Bitcoin Spot ETF Approved: The “Most Important” Short-Term Catalyst for BTC Price?

Bitcoin Spot ETF

Maesut, Thailand – June 5, 2021: Bitcoin stands in the foreground against a bright blurred background, the new concept of virtual currencies is the future of digital currency online financial payments, free text space for copying.

The price of Bitcoin has been on a massive rally in the past few weeks, largely due to talks about the potential approval of a Bitcoin exchange-traded fund (ETF) in the US. There has been widespread commentary on what will happen to the leading cryptocurrency if the SEC gives the green light to existing applications for an instant ETF.

Cantor Fitzgerald, a prominent investment and brokerage firm, is among the latest entities to address the potential impact of Bitcoin ETFs in the United States.

This is why Cantor Fitzgerald believes the Bitcoin Spot ETF will be approved

according to Bloomberg reportJosh Siegler and Will Carlson, research analysts at Cantor Fitzgerald, have become “increasingly confident” that their long-awaited Bitcoin exchange-traded fund will receive approval from the US Securities and Exchange Commission.

Cantor Fitzgerald analysts believe that the SEC, which has been reluctant to approve a Bitcoin investment product due to various market concerns, is now likely to give the green light to the revised and newly submitted applications.

The report highlighted that a “comprehensive surveillance sharing agreement with a regulated market of significant size” could compel the SEC. Interestingly, all pending spot ETF filings now appear to include a monitoring participation agreement in order to detect and address market irregularities.

Furthermore, Cantor analysts cited the recent ruling in favor of Grayscale, which overturned the SEC’s rejection of the asset manager’s proposal to convert its Bitcoin fund into an ETF. Sigler and Carlson added:

Ultimately, the court found that the SEC failed to explain why it approved bitcoin futures ETFs, but rejected Grayscale’s spot offering, despite strong evidence that the two products are similar, across several regulatory factors.

Finally, Sigler and Carlson believe that “the approval of a spot Bitcoin ETF is the most important short-term catalyst for the price of Bitcoin.” To support this assertion, analysts cited the leading cryptocurrency’s recent price surge, which all started with a false headline that BlackRock’s ETF had been approved.

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Cantor Fitzgerald analysts added:

The approval of a spot Bitcoin ETF in the US will serve as a “key moment” for the long-term adoption and legitimization of Bitcoin.

Bitcoin price overview

As of this writing, Bitcoin is trading at $34,104, with a meager 0.2% increase over the past 24 hours. The market leader has been moving mostly sideways since failing to close above $35,000 — its highest level in nearly 18 months — earlier this week.

However, Bitcoin maintained a significant portion of its gains on the weekly time frame, with significant gains of 13.2% in the past seven days. Meanwhile, the leading cryptocurrency has jumped nearly 27% in the past two weeks, according to CoinGecko data.

Bitcoin price thickens on the daily timeframe | Source: BTCUSDT chart on TradingView

Featured image from iStock, chart from TradingView

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